Has anyone encountered employers doing credit checks ?

Question

This is a really evil practice, big brother gone mad.
Worse than the East German Secret Police !
The STASI have gone, but employers doing credit checks ?
That's evil, imagine you want a JOB you need a JOB to earn a LIVING but a credit check and you're denied a way to earn a living now that is really SADISTICALLY EVIL !
Hope to hear from anyone familiar with this evil business.
And campaign to get it outlawed !

If you're suffering, share the pain, we'll work it out !

Answer 1

I agree with your frustration regarding this practice but unfortunatly here is the law"


Permissible purposes of consumer reports
Section 604(a)(3)(A) permits creditors or third party debt collectors to receive consumer reports if the third party "intends to use the information in connection with a credit transaction involving the consumer . . . and involving the extension of credit to, or review or collection of an account, of the consumer.
In general, any consumer reporting agency may furnish a consumer report under the following circumstances and no other:
In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.
In accordance with the written instructions of the consumer to whom it relates.
To a person which it has reason to believe
(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
(B) intends to use the information for employment purposes; or
(C) intends to use the information in connection with the underwriting of insurance involving the consumer; or
(D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
(E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assesvsment of the credit or prepayment risks associated with, an existing credit obligation; or
(F) otherwise has a legitimate business need for the

Answer 2

I have been there. The company feels you are a bigger risk to "fraud" them or steel money or mismanage their moneyif you have less then perfect credit. I personally think it is an EVIL stereotype about people. I can understand if it were a bank or such. I was about to be hired permanently at a credit reporting agency, and I was refused a permanent position because I had no credit or something. I was like 19. It was horrible, I learned from there how evil the business world can be. lol But I understand the practices now, and I thank God I don't work in the "money/banking" industry. I don't think this is an accurate portrate of your work ethics, as everyone has their own situation for why their credit is bad. It might not have been poor money-it might be because of poor health! (unexpected medical bills!) I got student loans I am paying on and still recieving! They would probably deny me a job to this day! lol

Answer 3

I suppose if it was a bank or another financial institution then there may be some small justification . But any check like this to me is a breach of privacy and should be outlawed , if indeed it is not already .
Up to I took early retirement from a large multinational ,I was heavily involved over a number of years in staff recruitment . This was a practise we never carried out or even thought about . All we did was write to the referees and the previous employers to confirm what was written on the application form was accurate

Answer 4

I think it is a good practice. Personally, the two friends of mine who have the worst credit are also the last two I would recommend for a job. Coincidence? Maybe. To me, unless there was a major life changing event, bad credit just reflects your total inability to get your act together. I do think your ability to manage your money reflects some level of intelligence, character, and self control, all traits you want in an employee. You can't rely on calling references anymore. Of course personal references will be good, but work references can't really say anything about you other than confirm you worked there, because everyone is so damn lawsuit happy these days.

Answer 5

It depends ENTIRELY what the job is .. anything to do with finance, sales or Customer ID (name/address Bank details ect) and I (for one) would never deal with a Company that DIDN'T do such checks ..

On the other hand, if you are in manufacturing, service & support etc. I see no reason why poor credit should stop you getting the job.

Answer 6

Yeah I work in Financail Services too......I don't mind as I've got nothing to hide. If you've got yourself in bad credit in the past you should be given a second chance. But at the same time I agree with the post above - if you can't manage your own money then you shouldn't work with anyone elses!

Answer 7

Sorry, I must disagree.

Credit reports are like report cards back when we were in school only instead of showing how good/bad we are doing in our studies they show how good/bad we are doing managing our debts.

I have worked for several companies that do this when they are thinking about hiring someone especially if it's for a management position or a position that requires handling money.

People that can not manager their credit most likely will not be good at managing anything else, this is why car insurance rates are also based partially on credit reports.

The other reason is people that can not manager their debt are more likely to steal from the company and are more subject to blackmail.

Answer 8

I believe that the local Casino does them as they're worried that people with access to the kind of cash they make and problems may do the most desperate things. I agree in a more mild way though, financial problems does not a thief make.

Answer 9

I have. I work in a defense company, and they check it when they do your back ground check. I guess something like 95% of people that have stolen company secrets have bad credit.

Answer 10

Sorry dude, but it's increasingly common and quite legal. Employers have discovered that employees with credit issues are not as trustworthy and reliable as are those WITHOUT such issues.

Of course, you can avoid such problems by keeping an excellent credit record.